The Design And Verification Of Mechanized Trading Patterns Based On The Technical Analysis Theory

Technical analysis has been considered to be a mysterious territory of the investment community; academia has also been doubt about Technical Analysis. It is generally felt that if investing activities are just for the analysis chart which is based on changes in market prices, strategies developed by no scientific basis. In order to confirm whether or not the technical analysis strategy can improve investment performance, scholars at home and abroad have also done some attempts and found that technical analysis can indeed help investors improve investment performance. With the development of science and technology, the theory of technical analysis is becoming increasingly richer and perfect; people can design their own trading patterns based on a variety of technical analysis strategy. Through the computer, they can translate the mode of rules and algorithm into the signal which computer system can identify to help them make investment decisions and market transactions, which is called "Mechanized Trading Patterns". This mechanized Trading patterns are able to effectively perform the investors specified analysis strategy to make investment behavior more rational, which greatly avoids the adverse psychological states such as regret, anxiety, overconfidence in the process of investment decision-making. The purpose of this article is to design a variety of strategy trading patterns on the basis of traditional theory of technical analysis (the Moving Average Theory), comparing and analyzing the investment performance of these trading patterns in the implementation process of mechanization. The entire article is to show the design ideas of trading patterns and their feasibility and applicability, and then to help investors see the technical analysis more objectively and use their own trading patterns more scientifically.